Questions from Auditing and Assurance

Q: What is meant by proportionate liability? Contrast this legal doctrine with

What is meant by proportionate liability? Contrast this legal doctrine with the doctrine of joint and several liability.

Q: What elements must a client prove to maintain an action against an

What elements must a client prove to maintain an action against an auditor for negligence?

Q: Distinguish among the four standards that have evolved for defining auditors’ liability

Distinguish among the four standards that have evolved for defining auditors’ liability for ordinary negligence to third parties under common law. Why is this area of auditors’ liability so complex?

Q: Distinguish between the Securities Act of 1933 and the Securities Exchange Act

Distinguish between the Securities Act of 1933 and the Securities Exchange Act of 1934. Why is it easier for a plaintiff to sue an auditor under the Securities Act of 1933?

Q: What elements must a plaintiff prove in order to win action under

What elements must a plaintiff prove in order to win action under Rule 10b-5 of the Securities Exchange Act of 1934? What was the significance of the outcome of the Ernst & Ernst v. Hochfelder case fo...

Q: Describe how substantive analytical procedures may be used to provide evidence on

Describe how substantive analytical procedures may be used to provide evidence on the reasonableness of interest expense.

Q: What were the most significant components of the Private Securities Litigation Reform

What were the most significant components of the Private Securities Litigation Reform Act of 1995 and the Securities Litigation Uniform Standards Act of 1998? Did the ruling in Tellabs v. Makor make i...

Q: In what ways does the Sarbanes-Oxley Act change criminal liability

In what ways does the Sarbanes-Oxley Act change criminal liability for auditors of public companies?

Q: Define assurance services. Discuss why the definition focuses on decision making

Define assurance services. Discuss why the definition focuses on decision making and information.

Q: Explain how internal auditors can play a vital role in helping management

Explain how internal auditors can play a vital role in helping management comply with the requirements of the Sarbanes-Oxley Act.